Because a Product's Demand for an Input to Its Production

question 109

Multiple Choice

Because a product's demand for an input to its production depends on the decision to produce this product,it is called ________ demand.

• A) dependent
• B) secondary
• C) derived
• D) production
• E) input

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Definitions:

Tariff

A tax levied on imported and, less commonly, exported goods, used to regulate trade by increasing the price of foreign products to encourage or protect domestic industry.

Real Exchange Rate

The rate at which a person can trade goods and services of one country for those of another, adjusted for inflation.

Import Quota

A limit set by a government on the quantity of a specific good that can be imported into the country.

Interest Rate

The amount charged by lenders to borrowers for the use of money, expressed as a percentage of the principal per period of time.